LONDON--(BUSINESS WIRE)--As concerns about sugar consumption and lifestyle-related diseases rise,
governments of various regions are implementing taxes on high-sugar
foods and beverages such as soda. These taxes are intended to reduce the
rates of overweight and obesity and to encourage healthy diets. Infiniti
Research expects this to have an impact on the operations
of food and beverage vendors and a positive influence on the
growth of markets for sugar substitute products, such as sugar alcohols.

The World Health Organization recommends a tax of at least 20% on sugary
drinks, and claim that the adoption of sugar taxes worldwide would help
to combat obesity and prevent chronic diseases such as type 2 diabetes.
The Heart and Stroke Foundation has suggested that a Canada-wide tax of
at least 20% on all sugary drinks (including soda, chocolate milk and
other flavoured milks, and fruit juice) would avoid approximately
200,000 cases of diabetes, 60,000 cases of heart disease, and 20,000
cases of cancer over the next 25 years. They project that it would save
13,000 lives and raise CAD 1.7 billion per year in new revenue for the
federal government.

Mexico, France, and Norway have successfully implemented nation-wide
sugar taxes on sugary drinks. Mexico’s tax has proven to be particularly
successful, with sugary drink purchases declining by more than 7% over a
two-year period. Canada may be the next to follow this trend. The
Northwest Territories recently announced their intention to introduce a
sugary drink tax in 2018/19, making it the first province or territory
in Canada to introduce such a tax, and potentially setting the stage for
the rest of the country to follow.

How Can Infiniti Research Help?

It can be difficult to predict how new regulations and taxes will be
received by consumers in a particular area, especially since sugar
consumption differs between different provinces and states in Canada and
the US. To better anticipate the effect that sugar taxes will have on
the sales of soda and other sugary drinks, the use of market
intelligence can be very beneficial. Market research and
analysis can provide insights on factors such as the dietary habits of
consumers, what their purchasing preferences are, and whether or not
they are in favour or against sugar and other food and beverage-related
taxes. This can help food and beverage vendors to predict sales, adjust
marketing and sales strategies, and adhere to new rules and regulations.

Infiniti Research was recently approached by a
leading global food and beverage vendor to help them better
understand consumer behaviour in Europe’s bakery segment. The insights
regarding customer trends, needs, preferences, and behaviours provided
by Infiniti’s food and beverage analysts allowed the client to generate
new ideas for product innovation, marketing, and packaging, and to
re-evaluate their overall strategy to increase sales and customer
retention.

Established in 2003, Infiniti Research is a leading market intelligence
company providing smart solutions to address your business challenges.
Infiniti Research studies markets in more than 100 countries to help
analyze competitive activity, see beyond market disruptions, and develop
intelligent business strategies.

With 13 years of experience and offices across three continents,
Infiniti Research has been instrumental in providing a complete range of
competitive intelligence, strategy, and research services for over 550
companies across the globe.